Market News

Petco Tanks after FY23 Outlook Disappoints

Shares of Petco Health and Wellness Company (NASDAQ: WOOF) dropped by more than 10% in morning trading on Wednesday after the pet health and wellness company guided for FY23 revenues in the range of $6.150 billion to $6.275 billion versus consensus estimates of $6.38 billion. Moreover, the company expects adjusted earnings to decline to be in the range of $0.21 to $0.13 per share. Petco also expects to incur capex between $225 million and $250 million in FY23.

 The company reported adjusted earnings of $0.23 per share in the fourth quarter, a decline of $0.05 year-over-year versus analyst expectations of $0.24.

Sales increased by 4.2% year-over-year to $1.58 billion, in line with estimates. Comparable sales were up 5.3% year-over-year.

Overall, Wall Street analysts are cautiously optimistic about WOOF stock with a Moderate Buy consensus rating based on four Buys and two Holds.

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